Question

US Unemployment Rate
1980–1985

A graph titled U S Unemployment Rate from 1980 to 1985 has year on the x-axis, from 1980 to 1985, and percent unemployed on the y-axis, from 4 to 12 percent in increments of 2. In 1980 the rate was 7 percent, in 1981 it was 9 percent, in 1982 it was 11 percent, in 1983 it was 8 percent, in 1984 it was 7 percent, and in 1985 it was 7 percent.



Examine this graph representing US unemployment rates. Which of these years might economists consider a trough?

1980
1985
1983
1982

Answer 1

1985.

A trough is the low point after a peak; unemployment peaks at 11% in 1982 and then falls to its lowest level (7%) by 1984–85, so 1985 is the trough shown.